The Kenya Revenue Authority (KRA) on Thursday, July 16, came under tight scrutiny by Parliament over its decision to clear an imported raw sugar consignment that received about Ksh2.98 billion in tax exemptions.

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The National Assembly Departmental Committee on Trade questioned KRA officials about the consignment's clearance and the number of tax waivers granted to the importer.

Appearing before the committee, KRA Commissioner for Customs and Border Control Lilian Nyawanda defended the agency's decision, saying the importer had complied with all customs requirements before the goods were released.

Nyawanda told lawmakers that the importer submitted all the required documentation and paid about Ksh500 million in import duty, insisting that the clearance process followed the law.

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However, MPs raised concerns over the exemptions granted on several levies and taxes, including Value Added Tax (VAT), Excise Duty, Import Declaration Fee (IDF), Railway Development Levy (RDL), Sugar Development Levy and Merchant Shipping Levy.

During the meeting, KRA admitted that the exemptions resulted in an estimated Ksh2.98 billion in forgone government revenue, a figure that prompted lawmakers to demand further accountability.

The committee also questioned why KRA officials failed to provide documents identifying the manufacturer of the imported goods during the hearing.

MPs further noted that key information, including the date of manufacture and expiry date of the consignment, was missing from the documents presented to the committee.

Committee Chairperson Bernard Shinali said the circumstances under which the consignment was cleared had raised serious concerns that required a thorough investigation.

"The circumstances under which the consignment was cleared are of critical concern. The huge tax losses in the form of tax waivers are equally a concern, and this committee must get answers to all concerns raised," Shinali said.

📰 Source: Kenyans.co.ke